Introduction to Advanced

Supply Chain Planning

<Name of the presenter>

 Agenda

 ASCP - Overview
 ASCP – Key Capabilities
 ASCP with OPM - Structure
 ASCP – Business Flow
– Plan
– Execute
 Plan types
 Plan type examples
 Agenda

 ASCP - Overview
 ASCP – Key Capabilities
 ASCP with OPM - Structure
 ASCP – Business Flow
– Plan
– Execute
 Plan types
 Plan type examples
 Oracle Advanced Planning
Complete E-Business Planning Solution

Supply Chain Intelligence SCI

Network Design SNO

Sales and Operations Demand Planning Demantra

Planning
Maintain From detail to summary IO
Finance Inventory Optimization
Service
HR
Fulfill Projects
All Product, Supply Chain & Manufacturing Planning ASCP
Make Customer,
& Supplier
Information Global Order Promising GOP
Procure

Plan Distribution Planning ASCP

Order
Sell Market Develop
Production Scheduling PS

SC Exception Management CP

Collaborative Planning CP

From short-term to long-term

 ASCP - Overview

 Comprehensive, internet-based planning solution

 Decides when and where supplies (for example, inventory,
purchase orders and work orders) should be deployed
within an extended supply chain.
– How do I plan my supply chain in the least amount of time
possible?
– How do I minimize the number of plans and iterations?
– How do I plan my entire supply chain?
– How do I involve my trading partners?
– How can I access my plan from anywhere?
– How do I keep improving my plans?
– How can I plan all manufacturing methods?
 Agenda

 ASCP - Overview
 ASCP – Key Capabilities
 ASCP with OPM - Structure
 ASCP – Business Flow
– Plan
– Execute
 Plan types
 Plan type examples
 ASCP – Key Capabilities

 Holistic Optimization, Planning, and Scheduling

– Plan all supply chain facilities simultaneously
– Supports multiple manufacturing methods - discrete, flow, project
and process
 Finite Capacity Planning and Scheduling
– Feasible plans considering both resource and material constraints
 Optimization
– Configure Oracle ASCP to optimize specific business criteria
 Backward Compatibility
– Deploy against any version of Oracle transaction systems
 ASCP – Key Capabilities

 Workflow-Driven Exception Messaging

– Alert planners to critical issues across the extended supply chain
 Global Accessibility
– Store plan data in a central planning server database
– Multiple planners can simultaneously access data from a single
plan
 Integrated Planning and Execution
– Evaluate and execute planning recommendations
 Simulation Capability
– Simulate unlimited number of “what if” scenarios for changing
business conditions
– Compare scenarios using online planning, copy plans, and
exceptions
 Agenda

 ASCP - Overview
 ASCP – Key Capabilities
 ASCP with OPM - Structure
 ASCP – Business Flow
– Plan
– Execute
 Plan types
 Plan type examples
 Integrated Planning with Process Manufacturing

OPM Advanced Planning

– Items and categories Advanced Supply Chain Planning
– Formulas
Demand Demand
– Routings forecast Management
– Resources
Constrained
– Recipes Real-Time
supply Sales and
– Production and
inventory costs Operations
Order Safety Sourcing Planned Planning
– Organizations
– Customers forecast stock rules orders
Supply
– Calendars and shifts commit
– Units of measure
– OPM process batches Strategic Global
Inventory Production
– OPM complex routings Network Order
Optimization Scheduling
and recipes Optimization Promising
– Sequence Dependent
Setups
Collaborative Planning Trade Promotion Planning
 Agenda

 ASCP - Overview
 ASCP – Key Capabilities
 ASCP with OPM - Structure
 ASCP – Business Flow
– Plan
– Execute
 Plan types
 Plan type examples
 ASCP Business Flow: Plan

Order Supply Chain

Management
Sales demand Sourcing rules

ASCP

Inventory

GME
GMD
Purchasing
Production capacity
Existing supply Product composition
 ASCP Business Flow: Execute

Promise dates
Order
Global forecasting Management

Inter organization transfers

Inventory

Purchase requisitions
ASCP Purchasing

Planned rates, process

batches Process
Execution
 Agenda

 ASCP - Overview
 ASCP – Key Capabilities
 ASCP with OPM - Structure
 ASCP – Business Flow
– Plan
– Execute
 Plan types
 Plan type examples
 Unconstrained planning

 Plan supplies to balance customer

demand without taking into
account, the constraints at
enterprise and plant levels
 Plan assuming infinite capacity
 No constraints on in-house and
Balanced supply and demand supplier capacities
across the supply chain  Planning run generates an
infeasible plan that overloads
manufacturing, supplier and
transportation capacity
 An iterative process follows; the
planner manually shifts orders and
reruns the material plan until it is
feasible
 Resembles classic MRP
 Constrained planning

 Plan supplies to balance

customer demand taking
into account, the
constraints at enterprise
and plant levels
Balanced supply and demand  Plan assuming finite
across the supply chain capacity - includes factory,
distribution and
transportation resources
 Material and capacity
constraints are considered
simultaneously
 Can be ECC or EDD
Respects
constraints…
 Optimized Planning

 Plan supplies to balance

customer demand taking into
account, the constraints at
enterprise and plant levels
 Chooses the solution that
results in the most desirable
Balanced supply and demand cost outcome for the
across the supply chain organization
 Also referred as Cost-based
optimized (CBO) planning
 The cost outcomes are
– Best customer service
– Minimum inventory
investment
– Greatest profit
Respects constraints while
meeting other organizational
objectives
 ECC Plan

 Enforces capacity constraints

 Violates demand due dates if
necessary to respect capacity
constraints
 Resources are loaded to their
Balanced supply and demand
limit to satisfy demand due dates
across the supply chain
 Unsatisfied demands are
pushed out to later dates - may
miss due dates.
 Exception messages indicate
which demands will be filled after
their due dates

Respects
constraints…
 EDD Plan
Balanced supply and demand
across the supply chain
Respects
constraints…
 Enforces demand due dates
 Violates capacity
constraints if necessary to
respect demand due dates
 Resources are overloaded
to satisfy demand due dates
 Exception messages
indicate the overloaded
resources.
 Decision Rules

 Used in conjunction with constraint-based planning

 Additional instructions to the planning engine to use substitute
items and alternate bills of material and routings to produce the
supply with fewer constraint violations
Example: Use Alternate Resources
 Agenda

 ASCP - Overview
 ASCP – Key Capabilities
 ASCP with OPM - Structure
 ASCP – Business Flow
– Plan
– Execute
 Plan types
 Plan type examples
 Production
Plan Type Example: Unconstrained

Demand
Production
4
Demand
Production

3
Demand
Production

2
Machine constraint
Labor constraint

Demand
Production

1
Demand
 Production
5
Plan Type Example: Constrained

Demand
Production
4
Demand
Production

3
Demand
Production

2
Machine constraint
Labor constraint

Demand
Production

1
Demand
Thank You.